The Caixin China Composite PMI™ data (which covers both manufacturing and services) showed a further modest increase in overall business activity during October. At 52.0, the Composite Output Index edged up from 51.9 in September, to post its best reading since April.
Data broken down by sector indicated that the stronger performance was driven by the manufacturing sector, as activity expanded at a slower pace at services companies. Furthermore, manufacturing output increased at the steepest pace since December 2016 in October.
Meanwhile, service providers signalled only a marginal upturn in activity, with the seasonally adjusted Chinese Services Business Activity Index easing from 51.3 in September to 51.1 in October. This marked the slowest increase in services activity for eight months, with some firms citing relatively soft overall market conditions.
That’s three out four PMIs showing barely any activity. I doubt the pop in the manufacturing version of Caixin even more now.
In short, China is struggling. Full report.